Criminal Justice

To complete the assignment you will need the U.S. Department of Justice, Criminal Division, Evaluation of Corporate Compliance Programs (updated June
2020) memo.
Assume that you are the head of compliance and risk management at Multi-Faceted, Inc. (“Multi-Faceted”), a Delaware corporation with diamond, gold, and
uranium mining operations in the United States and 19 other countries, spread out over four continents. In order to be able to mine diamond, gold, and
uranium,
Multi-Faceted has had to enter into agreements—mining concessions—with the governments of each of these 19 countries.
Negotiating a mining concession outside of the U.S. is a difficult, often drawn-out process.
A U.S. company, such as Multi-Faceted, seeking a mining concession must usually compete with myriad other foreign and domestic companies vying for the
same concession.
Mining and other government officials in some countries routinely ask for quid pro quos (aka: side-payments or bribes) in return for their “helping make
negotiations go more smoothly” and “helping increase the likelihood of a successful negotiation.”
Multi-Faceted is listed on the New York Stock Exchange and is registered with the SEC pursuant to the Securities Exchange Act of 1934.
Multi-Faceted has been subject to two major criminal penalties in the last year—one for violation of the Sarbanes-Oxley Act (the provisions studied in this
class) and the second for violation of the Foreign Corrupt Practices Act (FCPA).
The board of directors has handed you a copy of the U.S. DEPARTMENT OF JUSTICE, CRIMINAL DIVISION, EVALUATION OF CORPORATE COMPLIANCE
PROGRAMS (updated June 2020) memo (the “Justice Department Memo”) and asked you to answer the two questions set forth below.
Question 1
Note: your answer to Question 1 should be no longer than 500 words.
Read carefully the first substantive section of the Justice Department Memo—Is the Corporation’s Compliance Program Well-Designed? (Justice Department
Memo pp. 2-9).
Describe the three compliance program design issues from this first section of the Justice Department Memo that you believe are the most important for
addressing Multi-Faceted potential future criminal liability issues related to:
The Sarbanes-Oxley Act, and
The FCPA
For each of the three compliance program design issue that you choose, explain why you believe that compliance program design issue is important for a
company like Multi-Faceted.
In doing so, make sure that you refer to either the Sarbanes-Oxley Act or the FCPA (or both).
Also make sure that you support your arguments with specifics facts related to:
Multi-Faceted (its type of business, location of operations, etc.) and
The negotiation of mining concessions.
Please include the following heading in answering Question 1:
Question 1:
Compliance Program Design Issue #1 for Multi-Faceted
Compliance Program Design Issue #2 for Multi-Faceted
Compliance Program Design Issue #3 for Multi-Faceted
Question 2
Note: your answer to Question 2 should be no longer than 250-300 words.
“Having an integrated governance, compliance, and risk management system helps corporations reduce the risk of being subject to FCPA criminal ”
Please write a 250-300-word memo to convince the board of directors that this statement is true.
In doing so please make use of:
The materials in the last two sections of the Justice Department Memo
Is the Corporation’s Compliance Program being Implemented Effectively? pp. 9-14, and
Does the Corporation’s Compliance Program Work in Practice? pp. 14-18)
Please include the following heading in answering Question 2:
Question 2:
Is the Corporation’s Compliance Program being Implemented Effectively?
Does the Corporation’s Compliance Program Work in Practice?